Slate Asset Management Agrees To Acquire Grocery-Anchored Real Estate Portfolio of x+bricks Group in Transaction Valued at Over EUR 1 Billion
Wednesday, August 09, 2023
◦ Slate increases its portfolio of high-quality, stabilized real estate assets in Europe and ascends to one of the leading owners and operators of daily needs-based retail properties in Germany
◦ Transaction to be executed in two tranches, subject to certain closing conditions and regulatory approvals
◦ Both tranches of the transaction are collectively valued at over EUR 1 billion and comprise a 188-property portfolio
Slate Asset Management (“Slate”), a global alternative investment platform targeting real assets, has entered into an agreement to acquire the grocery-anchored retail property portfolio of x+bricks Group (“x+bricks”). The transaction will be executed in two tranches, subject to certain closing conditions and regulatory approvals. Both tranches of the transaction are collectively valued at over EUR 1 billion and comprise 188 properties. The parties have decided not to disclose further details.
Brady Welch, Co-Founding Partner of Slate Asset Management, says: “We are very pleased to be increasing our exposure to high-quality daily needs-based real estate in Germany, which we believe is a stable and defensive asset class with a positive growth outlook. Our ability to source and execute a transaction of this scale demonstrates the strength of Slate’s global team, the depth and breadth of our regional relationships, and our access to flexible capital through trusted partners who understand the value we bring to bear as investors and managers.”
To date, Slate has transacted on more than 650 daily needs-based retail properties in Germany. Today, Slate has a substantial footprint in the German market, with more than 220 properties, underpinned by Germany’s largest grocery and everyday goods distributors. Upon completion of the transaction, Slate will be one of the leading owners and operators of daily needs-based retail real estate in Germany.
Sven Vollenbruch, Senior Vice President at Slate Asset Management in Germany, adds: “We are proud to be a leading partner for grocery and everyday goods distributors in Germany and plan to continue strategically investing across our portfolio to provide our tenants with high-quality spaces that meet the wants and needs of their customers. We look forward to further modernizing these properties with new infrastructure that will enhance their sustainability and convenience, with the goal of making these assets even more efficient, healthy, and attractive to tenants and end users.”
In connection with the transaction, Founder and CEO of x+bricks Group, Sascha M. Wilhelm, has decided to sell his shareholding in the company and to take on new challenges. Jorgen Verink, CFO of x+bricks Group, will take over the management role from Sascha M. Wilhelm.
Sascha M. Wilhelm, Founder and CEO of x+bricks Group, says: “Fueled by the fascination to drive and grow new ideas, we have developed x+bricks into a leading platform for grocery-anchored retail properties in Germany over the past five years. This success has been driven by a great team of partners and employees, whom I would like to thank today. Following last year’s transactions, we succeeded in profitably selling the entire x+bricks portfolio to a strategic and proven investor in this asset class with outstanding capabilities to further develop the assets. At this point, I have decided to focus on new growth opportunities in a time window where the real estate market offers many attractive prospects.”
Stefan Hohmann, Managing Director and Head of Investment at x+bricks Group, adds: “In recent years, we have created a high-quality portfolio through numerous value-adding acquisitions and investments. We are pleased to pass on our best-in-class portfolio to Slate for further development now. This rapid and successful growth has been part of x+bricks’ identity since its inception.”
Custodia Trust Beteiligungsgesellschaft mbH, owned by Berlin-based entrepreneur and investor Harald Christ, will continue to hold an unchanged stake in x+bricks Group until the portfolio is fully transferred to Slate.
To assist in the onboarding of the portfolio, x+bricks will temporarily provide transitional services for Slate.
Slate Asset Management has been an active investor in the European real estate market since 2016. Today, Slate’s European real estate strategy is focused on acquiring, owning, and operating cash yielding, daily needs-based real estate assets, such as grocery; pharma or other healthcare services assets; and affiliated warehouses and logistics assets. Globally, Slate’s daily needs-based real estate portfolio comprises nearly US$5 billion in assets under management.
Goodwin Procter, Mellum Capital, Gleiss Lutz, KPMG, PwC, Gleeds, and R3define advised Slate on this transaction. Evercore, White & Case, EY, and Fieldfisher advised x+bricks.
About Slate Asset Management
Slate Asset Management is a global alternative investment platform targeting real assets. We focus on fundamentals with the objective of creating long-term value for our investors and partners. Slate’s platform has a range of real estate and infrastructure investment strategies, including opportunistic, value add, core plus and debt investments. We are supported by exceptional people and flexible capital, which enable us to originate and execute on a wide range of compelling investment opportunities. Visit slateam.com to learn more.
About x+bricks Group
x+bricks is a leading platform for grocery-anchored real estate in Germany. The company, which has developed the software solution PATA for real estate analyses, focuses on an attractive real estate market that combines long-term contracts with a strong credit tenant base as well as high demand for space with low vacancy rates, thus ensuring sustainable rental income largely independent of economic cycles. x+bricks was founded in 2018 and today comprises of approx. 190 properties throughout Germany. Further information can be found at: xandbricks.com/en/.